Australian Dollar to US Dollar (AUD/USD) Exchange Rate Gains on US Data

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The Australian Dollar to US Dollar (AUD/USD) exchange rate ticked higher by around 0.28% on Thursday morning.

After Australian labour market data printed negatively, the ‘Aussie’ (AUD) slumped versus the majority of its most traded currency rivals. Low gold and iron ore prices were also weighing on the South Pacific asset.

The US Dollar, however, softened across the board after domestic data printed disappointingly. A recent succession of negative economic data results is leading futures traders to pare bets as to the timing of a Federal Reserve cash rate increase.

The Australian Dollar to US Dollar (AUD/USD) exchange rate is currently trending in the region of 0.7743.

Australian Dollar (AUD) Exchange Rate Dives on Labour Data

Although Australian Consumer Inflation Expectation data increased from 3.2% to 4.0% in February, January’s labour market data caused the ‘Aussie’ to soften versus the majority of its major peers on Thursday. Employment Change saw -12,200 jobs, far more than the -5,000 predicted. In addition, Unemployment Rate gained beyond the 6.2% forecast, with the actual result showing an unwanted increase of 6.4%.

Cassandra Goldie, the chief executive of the Australian Council of Social Service, said: ‘The big jump in the unemployment rate we’ve seen today is deeply concerning, especially since it means 34,500 extra people are now in the troubling position of finding paid work in a tight labour market and those who rely on Newstart will have to struggle on the very low unemployment allowance payment of just $37 a day.’

The Australian Dollar to US Dollar (AUD/USD) exchange rate dropped to a low today of 0.7640.

US Dollar (USD) Exchange Rate Plummets on Retail Sales

After yet more US economic data printed poorly, the US Dollar dived versus its major competitors. Advance Retail Sales was forecast to rise from -0.9% to -0.4%, but the actual result only managed to reach -0.8%.

‘Overall, the tone of this report was disappointing as it points to a weak start to spending activity this year, despite the significant boost to disposable income from lower gasoline prices,’ said Millan Mulraine, deputy chief economist at TD Securities in New York.

‘Should we be worried about the weakness of underlying sales over the past two months? Possibly,’ said Paul Ashworth, chief U.S. economist at Capital Economics in Toronto. ‘But all the conditions are in place for a period of very strong consumption growth. We still expect to see that strength come through in the retail sales data soon.’

Australian Dollar to US Dollar (AUD/USD) Exchange Rate Forecast to Hold Gains

With negative sentiment towards the US Dollar mounting, the Australian Dollar to US Dollar (AUD/USD) exchange rate is likely to hold gains for the remainder of Thursday. There is plenty of potential for volatility on Friday, however, with US confidence data due for publication.

The Australian Dollar to US Dollar (AUD/USD) exchange rate climbed to a high of 0.7779 today.

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